Evidence to Support the Ricardo-Barro Effect Would Show That

question 84

Multiple Choice

Evidence to support the Ricardo-Barro effect would show that

• A) higher government budget deficits decrease investment.
• B) higher government budget surpluses decrease investment.
• C) government budget deficits increase household consumption.
• D) government budget deficits have no effect on the real interest rate or investment.
• E) higher government budget deficits raise the real interest rate.

---

Definitions:

Nonprofit Organizations

Organizations that operate for the public or social benefit, without the goal of making profits for owners or shareholders.

Social Change

The variation in societal norms and cultural values over time, which impacts the way individuals and communities live and interact.

Worth

The value or importance of something, often measured in terms of money, effectiveness, or intrinsic merit.

Private Foundations

Nonprofit organizations funded by a single source, like a family or corporation, to support charitable activities.